Earnings and target price revision• We have made only modest...

Earnings and target price revision• We have made only modest changes to our earnings forecasts for AKE afterincorporating the 2QFY22 result. Our earnings forecasts move 0-2% for FY22-FY26 as the updates to production guidance are largely offset by 2HFY22realised pricing guidance.• Lower royalties for Sal de Vida drive modest upgrades to longer-term earningsand a 3% lift in our ASX and TSX price targets to A$14.00 and C$12.60,respectively. Movements in lithium prices and variances in AKE’s productionand costs compared to our assumptions present the key risk to our earningsforecasts and valuation for AKE.Price catalyst• 12-month price target: A$14.00/C$12.60 based on a 50/50 Blend of 12.0xforward EV/Ebitda and NPV methodology.• Catalyst: Updates on realised pricing and the progress of key projects at Salde Vida and Olaroz present key near-term catalysts for AKE.Action and recommendation• Maintain Outperform: AKE’s 2QFY22 result was solid with beats in bothvolumes and realised prices. Pond construction has commenced at Sal deVida with first production now 2HCY23, in line with our estimates, while OlarozStage 2 capex has increased 10-15%. Spot lithium prices in China are tradingmaterially above our forecasts, suggesting there is upside risk to our FY22realised prices for AKE.